IEEE - Institute of Electrical and Electronics Engineers, Inc. - Policies Adoption for Supply Disruption Mitigation Based on Customer Segmentation.
|Author(s):||Qinglu Gao ; De Xia ; Yangyan Shi ; Ji Quan|
|Publisher:||IEEE - Institute of Electrical and Electronics Engineers, Inc.|
Supply chain disruptions resulted from various disasters may cause awesome loss, therefore corresponding operational policies should be designed to mitigate the negative effect. In industrial... View More
Supply chain disruptions resulted from various disasters may cause awesome loss, therefore corresponding operational policies should be designed to mitigate the negative effect. In industrial goods supply chain customers are segmented and have different contribution and significance to manufacturers, which has to be considered when adopting mitigation policies. From the customer heterogeneity perspective, models of a three-stage supply chain with single supplier and two suppliers are established, and sensitivity analysis is carried out to investigate scenario parameters' impact on optimal mitigation policies. Numerical experiments find that safety stocks are suitable for low disruption probability situation. Meanwhile strategic reserves with lower holding cost are attractive and efficient to handle fairly highly disruptive situation or high key customer loss. The results also indicates backup supplier should be adopted if there is a low disruption probability or the backup supplier's price is not significantly higher. This work extends the supply disruption research and leads some managerial implications and insights that might be useful for disruption mitigation in industrial goods supply chain.View Less